Lords rule against compensation for injury to feelings

Employees
will not be able to recover damages for injury to feelings in unfair dismissal
cases following a judgment in the House of Lords today.

In
the case of Dunnachie v Kinston upon Hull City Council, on whether
damages for injury to feelings are recoverable in unfair dismissal claims, Lord
Steyn held that damages for non-economic loss are not recoverable for unfair
dismissal, and that section 123 of the Employment Rights Act 1996 only allows
tribunal to award financial losses.

Employment
lawyer Daniel Barnett said: "This will end the battle between employee and
employer representatives in small value cases who cannot agree whether (in
principle) an award for injury to feelings should be made."